The Formula for the compound interest is:
A = Amount Accumulated = $5000
P = Principal Amount = $1250
n = compound period in a year = 4
r = Interest Rate
t = Time in years = 12
Using the values in the formula, we get:
Thus, in order to achieve the given conditions, 11.72% interest rate is required.
A = Amount Accumulated = $5000
P = Principal Amount = $1250
n = compound period in a year = 4
r = Interest Rate
t = Time in years = 12
Using the values in the formula, we get:
Thus, in order to achieve the given conditions, 11.72% interest rate is required.